10 startling facts about global wealth inequality

1. On Monday, Oxfam published a startling report showing that the richest 85 people in the world are worth more than the poorest 3.5 billion.wealth pyramid

2. The numbers Oxfam is using come from Credit Suisse’s 2013 Global Wealth Report. There are a lot of amazing numbers in that report.

3. For instance, Switzerland leads in average wealth, with each adult worth, on average, $513,000. Australia is in second place, at $403,000. The U.S. is in the $250,000-300,000 range.

4. But that’s average wealth — which is to say, that number spikes if Bill Gates moves into your country. Median wealth is a more interesting measure. There, Australia leads with $220,000. They’re followed by Luxembourg, Belgium, France, Italy, the UK, and Japan. The U.S. falls way back on this measure, with a median wealth of just $45,000.

5. Think about that for a minute: Most Americans are worth less than most Italians, Belgians and Japanese.

6. Some researchers think Credit Suisse overestimates median wealth in the U.S. Other estimates put us in 27th place.

7. The tremendous difference between average wealth and median wealth is the country’s level of wealth inequality at work.

8. Global wealth inequality is even more startling, of course. After accounting for debts, assets of more than $4,000 put a person in the wealthiest half of world citizens. Assets of more than $75,000 put them in the top 10 percent. Assets of more than $753,000 put them in the top 1 percent.

9. This leads to the most startling figure in the report: “Our estimates suggest that the lower half of the global population possesses barely 1% of global wealth, while the richest 10% of adults own 86% of all wealth, and the top 1% account for 46% of the total. “

10. There’s a lot of turnover amidst the world’s top billionaires. Of the 100 top billionaires in 2001, only 37 remained on the list in 2013.

by Ez

What Drives Globalization? Part 3/4

Globalization is driven by four factors:

  1. Cost
  2. Market
  3. Environment
  4. Competition

Environment:

Increasing consumer wealth and mobility, rapid information transfer across borders, publicity about the benefits of globalization, and technological revolutions continue to accelerate demands for global products and services. Newly emerging markets are benefiting from advanced communications by leaping over economic development stages that others slogged through in earlier years.

A new group of global players is taking advantage of the increase in trading regions and newer technologies. These “mini-nationals” or “born globals” serve world markets from a handful of manufacturing bases rather than building a plant in every country as was the procedure in earlier years. Their smaller bureaucracies also allow these companies to move quickly to conquer new markets, develop new products, or change directions when the situation calls for it.

This is an excerpt from Dr. Czinkota’s book Global Business: Positioning Ventures Ahead, co-authored by Dr. Ilkka Ronkainen.

Michael R Czinkota and Ilkka A Ronkainen, Global Business: Positioning Ventures Ahead (New York: Routledge, 2011), pg.91-92.

 

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Fun International Business Cartoon

You may have seen some of my previous posts with samples from my forthcoming international business calendar “The International Daily Iconoclast” with renowned artist David Clark. Each day will have a fun or interesting saying or fact, supplemented by a wonderful cartoon drawing.

Below I have posted another example of the fantastic drawings that are in the calendar. It is available for pre-order. The cost is $13.99 plus shipping. Get your orders in quickly. Don’t miss out on your daily dose of international business wisdom. Email us here with your information to get your name on the list.